THE IMPORTANCE OF UNDERSTADING THE ''MACRO

ENVIRONMENT'' FORCES AND KEY

CHARACTERISTICS OF SERVICES THAT WOULD

IMPACT THE OPERATIONS OF A SERVICE

ORGANIZATION AND DEVELOPING THE APPROPRIATE

MARKETING MIX ELEMENTS FOR ORGANIZATIONAL

SUCCESS.

Prepared By

L.J.P.Balasingham

40288

Slim Business School Boralle

December

Preliminary Certificate in Marketing

1
 SRI LANKA INSTITUTE OF MARKETING
Content
1.Executive Summary - pg.3
2.Introduction. -pg.4
3.Task 1. -pg.5
4.Task 2. -pg.6-7
5.Task 3. -pg.8-9
6.Task 4. -pg.10-11
7.Conclusion. -pg.12
8.Annexure. -pg.13-16
9.References. -pg.17

Excecutive Summary
This assingnment is about the macro and micro environmental factors which affects

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on a service providing business. This going to be discussed under four main headings
briefly,
1.Introduction
This will provide you the information about several services rended by the selected
company.
2.Task 2
Under this heading a detailed description about the key characteristics of a service.
3.Task 3
Under this heading the selected servise is described under the service mix [7Ps]
4.Task 4
Final stage describe about the macro environmental factors which affects the selected
services .Simply the [PESTEEL factors]

Intoduction
This assingnment is about to explain the effects of macro and micro environmental
factors of a service providing organization.
Inorder to provide a complete idea I have selected the housing loan service of NDB bank
will be explained.
Housing loan of NDB bank will be explained under service mix ''7Ps'' and the effects of
PESTEEL factors the service by the assingnment.
1.NDB Bank

3
 1.1.Housing Loan
'' NDB Home Loan'' leads with the aim of ''Owning a home to call your own.''. This
follows with a repayment tenure from 20 years up to the retirement age, financing from
Rs.100,000/= upwards, dedicated personalised team to assist the customers .
Under home loaning special offer is given to ETF members with a significant name
''Viyana''. This includes the lowest fixed interest rate, flexible reoayment tenure up to 20
years, financing from LKR 250,000 up to LKR 2.5 million upwards, these loans are
offered as against a mortage.
1.2.Credit Cards
NDB proudly introduces good life cards a unique range of crdit cards that give you
superior deals, excepted offers and enviable advantage all the same time.
NDB Bank credit cards come with a wide range of features, including balance
transfes, rewards and frequent flyer points, as well as premium and platinum cards.
Further information refer the annexure.
1.3.Mobile Banking
By downloading the NDB mobile banking app, acces your accounts and carry out
transactions from any of your mobile devices running IOS, Android, or Windows.
From this, it access all your accounts anywhere anytime, carry out a wide range of
secured transactions switch on/off your credid/debit cards and
finally it make your banking experience fun and easy.

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Characteristics of Service.
1.Intangibility
This means that services cannot be seen tasted,felt,heard or smelled before they ae
bought. It means customers finds it difficult in evaluating a service before purchase. A
person who is taking a loan in order to fulfill his shelter need by building a house with the
financial support from a bank under house loan scheme cannot see the result before the
purchase and it is virtually impossible to judge the success of the bilding process.
2.Inseparability
This means services are produce and consumed at the same time and cannot be separated
from their providers.
According to the assingnment example after the housing loan is obtained by a customer
it is considered as consumed by the customer at the point of the transaction took place.
3.Variability
This means that the quality of services may vary greatly depending on who provides
them and when where,and how they are provided.
According to NDB bank housing loan it's variability shows more specifically by having
two main types of housing loan facility such as ''Viyana'' housing loan for ETF members
and NDB home loan fo other personal.
4.Perishability
This simply means that services cannot be stored for later sale or use.According to

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housing loan example the service is rendered only when it is needed by the customers and
it completely depends on customers' wish.
Further this is not a problem when demand is steady for a service. However when
demand fluctuates service firms often have difficult problems for this reason they have
come across of different strategies, as NDB bank use a low interest rate on loans inorder
to compete in the market and keep up the demand.
5.Ownership
According to service providing business the ownership is not transfered among the
parties involve in a service transaction.

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Analysis of Marketing Mix
1.Product
A product can be intangible or tangible as it can be the form of a service or a good.
According to the assingnment this is a service which intangible yet fulfill human need of
having shelter by having financial support.
2.Price
Price is a very important component of the service mix definition because this determines
the firm's profit and survival.
As a housing loan the price of the service deffer from person to person base on the
amount they take as a loan and the price I determined by the interest rate.
3.Place
Placement is also an important factor in succeeding the market of a service.
The success of promoting the housing loan by NDB bank is locating branches in every
main cities inorder to attract and make easy for the constomers to have the service.
4.Promotion
Another very important component in service mix is promotion.
Promotion comprises with four main elemets,
1.Sales organization.
2.Public relations.
3.Advertising.
4.Sales promotions.
NDB bank mainly use television advertising and news paper articlesin promoting this
relevent service.
5.People
Of both target market and people directly related to the business.
When we talk about the people for business there are two types of them one business's
employees because they are the ones who deliver the service to the end customers. Others
are the businss's customers who are willing to obtain the service.
Accoding to NDB bank customers are the ones who are in need of financial suport for

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their dream houses to be built.
6.Process
The systems and processes of the organization affects the execution of the service, and it
is needed to be well-tailored process to minimize cost.
According to NDB bank the process is the paper work in providing a loan for a suitable
personal.
7.Physical Evidence
In a service mix there should definitely be physical evidence that the service was
delivered, it also pertains that the business and the products are perceived in the market
place.
NDB bank is promoting their name as the physical evidence to the people for having loan
inorder to keep a good place on the market place.

Impact of ''Macro environment forces''

1.Political factor
The banking sector looks all powerfull-but it's sisceptible to a bigger giant: the
government.
Government laws affects the state of the banking sector. The government can intervene in

8
the matters of banking whenever, leaving the industry susceptible to political influence.
This includes corruption amongst political parties, or specific legislative laws such as
labour laws.
2.Economic factor
The banking industry and the economy are tied. How income flows, whether the
economy is prospering or barely surviving during times of recession \, affects how much
capital banks can access spending habits, and the reasons behind them, affect when
customers borrow or spend funds at banks.
Exchange rates affects banks globally - stable currencies such as the US dollar impact
other currencies, spending habits and inflation rates in other countries.
3. Sociocultural factor
Cultural influences, such as buying behaviours and necessities, affects how people see
and use banking options. People turn to banks for advice and assistance for loans related
to business, home, and acdemics, consumers seek knowledge from bank tellers regarding
saving accounts, bank related credit cards, investments, and more.
4.Technological factor
Once it was expeced to visit the local bank to make changes to financial accounts. But not
anymore.
Technology is changing how consumers handle their funds. Many banks offer mobile app
to witness accouts, transfer funds, and pay bills on smartphones. For NDB bank it is the
''NDB mobilebankind app''.
Smartphones can scan cheques, and the bank can process it from their end, at their
location. This change helps to save paper and the need to drive directly to the branch to
handle these affairs.
5.Legal factor
The banking industry follows strict laws regarding privacy, consumer laws, and trade
structure to confirm frameworks within the industry. Such structures are required for
customers in the allocated country and fo international users.
6.Environmental factor
Use of mobile banking reduce the affairs related to drive directly to a branch to handle.

9
Many issues are taken care of through mobile apps and online banking services.
Consumers can apply for credit cards online, buy cheques online and have many of their
banking questions answered online or by phone. Thus, reducing individual environmental
footprints.

Conclusion
To the end it is clear that services being the most important sector in assisting to a
specific country's ''Gross Domestic Price''.
As discussed there are 7Ps in realation to the services in making them success and survive
in the market.
Also it was said that there are types of macro environment factors which affects the
success of a services organization and to be survive in the market place.
According to my cpnclusion it is clear that the success and the survival of a service
organization all the factors of service mix and the forces of macro environment is so
essential to it's maximum point.

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Annexure
1.NDB bank credit cards
NDB proudly introduces Good Life Cards: a unique range of credit cards that give you
superior deals, exceptional offers and enviable advantages all at the same time so you can
enjoy life like never before.
See all 5 NDB Bank Credit Cards
NDB Silve Credit Card

NDB Good Life™ credit cards to spend smart.

11
 Min. Monthly Income
20,000/=

Annual Fee
1,500/=

Join Fee
1,500/=

Interest Rate (monthly)

2.33%

NDB Gold Credit Card

NDB Good Life™ credit cards with flexibility to buy-now and pay-later.

Min. Monthly Income

50,000/=

Annual Fee
2,500/=

Join Fee
1,500/=

Interest Rate (monthly)

2.33%

12
NDB Platinum Credit Card

NDB Good Life™ credit cards will grant the flexibility to buy-now and pay-later.

Min. Monthly Income

150,000/=

Annual Fee
3,500/=

Join Fee
2,500/=

Interest Rate (monthly)

2.33%

NDB Signature Credit Card

NDB Good Life™ credit cards a unique signature in your life.

Min. Monthly Income

250,000/=

13
 Annual Fee
5,000/=

Join Fee
2,500/=

Interest Rate (monthly)

2.33%

NDB Infinite Credit Card

NDB Good Life™ credit cards brings your dreams true.

Min. Monthly Income

400,000/=

Annual Fee
6,500/=

Join Fee
2,500/=

Interest Rate (monthly)

2.33%

14
Rates last updated November 25th, 2019
Get the credit card that puts money back in your wallet!

References
1.Wikipidia
2.NDB bank worker

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